Forecast and trading signals for Bitcoin on February 10

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Bitcoin, H1 time frame:

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Bitcoin tried to continue rising in the H1 chart yesterday and it managed to do so. The absolute maximums were updated again, however, there was no movement by $ 5,000 - $ 7,000 up this time. The price broke through the resistance level of $ 45879, but it failed to resume growth with the same pressure. Thus, a correction is now in process. In general, the upward trend is maintained, proven by the upward trend line. Therefore, we cannot expect Bitcoin to move below this trend line yet. Today, it will most likely try to decline to the Kijun-sen line of the Ichimoku indicator. And although this is a fairly large segment – about 2.5 thousand dollars, it does not matter to Bitcoin. During the previous review on the "cue ball," it is recommended to trade upwards, as the level of $ 45879 was broken through. However, growth did not continue to the target level of $ 50834, as trading fully is now generally associated with increased risks, as the price is at absolute highs. There are no intermediate extreme levels, the movement is impulsive, speculative and can end at any time. Therefore, it is necessary to be careful.

Bitcoin, M15 time frame:

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The lower channel of the linear regression turned down in the M15 chart, which gives Bitcoin hope for a correction in the coming days. However, the price has not even managed to consolidate below the level of $ 45879. There was one false breakout of this level, but the trades are currently going above it. This means that buyers are not yet taking profits on long positions and Bitcoin can further rise.

It was mentioned a few times in the previous articles that the cryptocurrency market is extremely volatile and unstable. Can you imagine Christine Lagarde or Jerome Powell making a statement after which the EUR/USD pair would rise by 10%? That is, for example, from $ 1.2200 to $ 1.3300. For such a thing to happen, the EUR/USD pair will need at least a couple of months. But Bitcoin can only do this in just a few days. It can be recalled that the president of Tesla and SpaceX first tweeted on his account regarding Bitcoin, stating that he believes in this cryptocurrency. And literally days later, Tesla announced to the US Securities and Exchange Commission that it had invested $ 1.5 billion on it. The company also said it is going to accept this leading cryptocurrency as a means of payment for Tesla electric cars. Tesla explained its decision by the desire to change the approach to investment policy, which will make it possible to earn money that is not involved in maintaining the necessary operational liquidity. It would seem that the transaction was already completed at the time of the report to the SEC. However, bitcoin is not gold, currency, or stock. It is subject to completely different rules of exchange rate formation. In particular, the most important factor on a trend is traders' mood or the "speculative factor". And for the mood of traders, just such tweets from Elon Musk are needed. As soon as it became known that Musk is favorable to bitcoin, and his company invested money in it, a new batch of traders rushed to buy the "cue ball" in the hope that the price will grow even more. That is, we are now in the next wave of uncontrolled growth. "Cue ball" is not needed by anyone, as a means of accumulation or preservation, instead everyone needs it as a means of gaining profit.

In any case, there are two trading ideas for February 10:

1) Buyers still control the cryptocurrency market and continue to set records for Bitcoin's value. Thus, it is recommended to buy it again if the price holds above the level of $ 45,879, with a target of the $ 50,834 ($ 50,000) resistance level. In such cases, Take Profit can be up to $ 4200 per 1 lot. Moreover, buying bitcoin is also possible if the price clearly and accurately rebounds from the Kijun-sen line ($ 42,753) with a target of $ 45,879.

2) Bears are resting again and are waiting for buyers to start fixing profits on long positions. Thus, it is not suggested to sell Bitcoin at least today or in the near future, as it is very risky on such a strong upward trend. It is necessary to wait until the upward trend is over and clear sell signals are observed, or at the very least, once the price consolidates below the critical line.

Explanations for illustrations:

Price levels of support and resistance (resistance/support) - levels that are targets when opening purchases or sales. It is possible to place Take Profit levels near these levels.

The Kijun-sen and Senkou Span B lines are the Ichimoku indicator lines transferred to the H1 and H4 time frame.

Support and resistance areas - areas where the price has repeatedly rebounded.

Yellow lines - trend lines, trend channels and any other technical patterns.

The material has been provided by InstaForex Company - www.instaforex.com

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